Employment in Germany 2008

Main employment developments 2006-2008

Summary of legislative change and prospects 2002-2008

Section 1 – Organisations

• Trade unions
• Employers’ organisations
• Official bodies
• Research institutes
• Employment tribunals and procedures

Section 2 – Commencement of employment

• Recruitment
• Official notification and work permits
• Works council rights on personnel issues
• Young workers and trainees
• Finding the applicant
• Placement and recruitment services
• Recruitment media
• Graduate recruitment
• Selection procedures
• Appointment of employees

Section 3 – Contracts of employment
The contract of employment

• Types of contract of employment
  Indefinite contract of employment
  Probationary period
  Fixed-term contracts
  Part-time contract
  ‘Zero hours contracts’
  Job-sharing
  Telework
  Minijobs
  Temporary agency employment
• Contractual issues - employer and employee rights
  Contractual penalties
  Other employment
  Confidentiality
  Restrictive covenants
  Employee liability
  Repayment of training costs
  Variation of terms
• Anti-discrimination and equal opportunities
  General Law on Equal Treatment, 2006
  Federal Antidiscrimination Agency
  Discrimination issues
• People with disabilities
• Bullying
• Data protection and employee privacy
• Drugs, alcohol and tobacco
• Transfer of undertakings

Section 4 – Termination of contract

• Forms of termination
• Notice periods and form of notice
• Discipline and grievance procedures
• Individual dismissal on non-economic grounds
• Grounds for dismissal
• Summary dismissal
• Notification rules for non-economic dismissals
• Works council notification and consultation
• Termination on economic and operational grounds
• No-redundancy and related agreements
• Notification and consultation for economic dismissals
• Collective dismissals
• Severance pay and social compensation plans
• Social Compensation Plans
• Termination of managers
• Termination by mutual agreement
  Severance payments
• Formalities on termination
• Protected employees
• Insolvency
• Unlawful dismissal
• Unemployment benefit

Section 5 – Industrial relations and collective bargaining

• Industrial relations and collective bargaining
• Strikes and industrial action
• Workplace employee representation
• Corporate governance and board codetermination
• Levels of bargaining
• Recent bargaining trends
• Flexible provisions in collective agreements
• Employees outside collective bargaining

Section 6 – Pay and benefits

• Make-up of pay
• Statutory pay determination
• The Posted Workers’ Law
• The law on pay
• Basic pay
• Reward management issues
• Regional pay differences and local allowances
• ‘13th’ month payments
• Performance pay
• Overtime premia
• Night work and shift premium payments
• Pay for public holidays and weekends
• Pay for short-time working
• Employee financial participation

Section 7 – Working time and time off

• Daily and weekly hours of work
• Flexible working hours
• Shop opening hours
• Sunday and holiday working
• Overtime and night work
• Annual leave
• Public holidays
• Sick leave and sick pay
• Time off rights
• Short-time working

Section 8 – Retirement and pensions

• Retirement and pensions
• Company and supplementary pension schemes
• Industry-level pension schemes
• Phased early retirement

Section 9 – Other labour costs

• Social security contributions and benefits
• Other benefits

Appendices

1. Prices and comparative price levels
2. Pay and Earnings
3. Income tax
4. Total labour costs in West and East Germany
5. Labour costs in international comparison
6. Social Compensation Plans
7. Severance payments – tax and social security rules
8. Guidance notes for contracts